Big Boys in USA Rationing Rice Sales

sloopskipper says on Apr 24, 2008, 09:43:

Sam's Club, Costco Curbing Rice Sales
by Adam Davidson, National Public Radio
http://www.npr.org/templates/story/story.php?storyId=89886019 (Includes a link to listen to the broadcast)

All Things Considered, April 23, 2008 · Wal-Mart Stores Inc.'s Sam's Club and Costco divisions are placing limits on the amount of rice that customers can buy. Company officials say demand for rice has shot up sharply in the wake of concerns about global food shortages.

Man Tequila says on Apr 24, 2008, 09:44:

Yeah, you can't buy more than four big bags of rice at time. Anyne remembr Y2K?

Aunque no me creas/ si me lo propongo/ lograre olvidarte/ porque a fin de cuentas/ no soy tan cobarde./ Y termino todo una de estas tardes/ no sera dificil buscar algún sitio donde refugiarme/ donde nunca mas vuelvas a encontrarme. (Polo Montañez)

Catfish35 says on Apr 24, 2008, 12:11:

Thanks Sloop of rthe link, could not get it up..jaja.
Very interesting all this shtiff going on!
Always have to wonder how it may or may not play out on Colombia..I do believe that SA gets direct Rice from Asia not from USA , can anyone correct me?

The grass is always greener over the septic tank

BillBigD says on Apr 24, 2008, 12:11:

Prices of Rice have increased 50% in 3 weeks. Quite a few countries are not exporting rice.
Not a big deal in US as we eat only 3% of the worlds rice. Can't blame this one on BUSH LOL

Tinto (Moderator) says on Apr 24, 2008, 12:21:

And I would not be surprised if rice acts very much like wheat, and begins a rapid descent in the next couple of months.

Two months ago a bushel of Minneapolis Hard Red Spring wheat flirted with $25.00 USD per bushel. Today it's $11.45. The Kansas City Hard Red Winter wheat futures contract was $13.50, now it's $8.50. Those are still VERY high prices, but they're not making headlines anymore. Tell your pizza man and bagel man to stop gouging you with price increases!

sloopskipper says on Apr 24, 2008, 12:43:

Another, from the UK:
http://www.guardian.co.uk/environment/2008/apr/24/food.usa

Shops ration sales of rice as US buyers panic· Restaurants stockpile to guard against soaring cost

· Call to maintain exports as world food crisis grows

Andrew Clark in New York, Rory Carroll in Caracas, and Julian Borger The Guardian, Thursday April 24 2008 Article historyAbout this articleClose This article appeared in the Guardian on Thursday April 24 2008 on p23 of the International section. It was last updated at 00:06 on April 24 2008. The global food crisis reached the United States yesterday as big retailers began to ration sales of rice in response to bulk purchases by customers alarmed by rocketing prices of staples.

Wal-Mart's cash and carry division, Sam's Club, announced it would sell a maximum of four bags of rice per person to prevent supplies from running short. Its decision followed sporadic caps placed on purchases of rice and flour by some store managers at a rival bulk chain, Costco, in parts of California.

The world price of rice has risen 68% since the start of 2008, but in some US shops the price has doubled in weeks.

Retail experts said there was little evidence of panic hoarding by the public but that restaurants and smaller retailers were buying up stocks at wholesalers in the expectation that the cost would go even higher. Shops said Filipino residents in the US were also making large purchases to send to relatives in the Philippines, where a shortage of supplies is causing concern.

"What you're seeing is people who buy in larger quantities, who have a restaurant or a corner store, stocking up because of media reports that prices could go higher," said Dave Heylen, a spokesman for the California Grocers Association.

The price of staple foods has been rising at an accelerating rate across the world, driven by what the United Nations has called a "perfect storm" of rising demand from developing countries such as China and India, the impact of climate change and policy responses by governments.

Since the beginning of the year, rice-producing countries including China, India, Vietnam and Egypt have imposed limits on exports to keep domestic prices down. This week, a top World Bank official predicted that Thailand, the world's largest rice exporter, might follow in restricting shipments.

The EU trade commissioner, Peter Mandelson, yesterday called on the World Trade Organisation to put pressure on food-producing countries to maintain exports. "If we restrict trade, we're simply going to add food scarcity to the already large problems of food shortages that exist in different countries," he told Reuters news agency.

The director of the UN's Food and Agriculture Organisation, Jacques Diouf, said the crisis had been building for decades. "The situation we are in is the result of inappropriate policies over the past 20 years," Diouf told journalists in Paris, pointing to a halving of aid to agriculture in developing countries between 1990 and 2000, while the industrialised world maintained generous farm subsidies.

British officials say they hope the food price shock will provide impetus for a long-delayed deal on liberalising world trade, known as the Doha round. They predict a possible breakthrough in the next few weeks. They also point out that the price rise could bring much-needed income to rural areas in Africa and elsewhere in the developing world if farmers are given enough support to respond.

Diouf said: "This is not Greek tragedy where fate is decided by the gods and humans can do nothing about it. No, we have the ability to influence our futures."

In Venezuela, President Hugo Chávez yesterday announced a $100m "food security fund", at a regional summit to agree policy as the crisis spreads instability across Latin America and the Caribbean.

Looting and riots in Haiti left at least six dead and forced the resignation of the prime minister this month, leaving the hemisphere's poorest country tense and edgy. In Guyana an 80% rise in the price of rice and 50% in the cost of chicken triggered protests and a strike by sugarcane workers. The government promised to issue seeds and urged people to cultivate idle land. Surinam set up an emergency cabinet committee to seek ways to dampen food prices.

nine inch nails says on Apr 24, 2008, 13:01:

Is why I ate every last piece last night because it may be awhile before I can buy some more.

Looks like they decreased my portion size which is ok with me since I usually don't get to the other half anyway.

get down, get down

Catfish35 says on Apr 24, 2008, 14:52:

TINTO,
I beg to differ. I have bought High Gluten 50lb bags for the past 8 years unchanged from all the big food distributors and have not paid over $10.52 per bag... I cannot buy the same bag for my pizzas for less than $32.50...was $48.00 2 weeks ago. Had to raise the price, it is not the bagelman nor the pizza mans fought.
I am far from a conspiracy addict however, I find it hard to believe that the current administration does not have a hand in this commodity turmoil right now. If you guys remember the idiot came out last year and did everything but actually tell the farmers to stop growing what their growing and throw everything into Corn.
It was also hard to believe back in the Reagan era about the Bananas and why they went thru the roof until it was revealed that the crook Olie North was a major man in Chiquita, owned a ranch in Costa Rica (now via world court belongs to CR) flew around on Chiquitas lear jets and had his hand in importing Coca Base into the US. I ate lunch inside the C130 Transport plane (flown by the Air Force) that is now a restaurant in CR. It crashed, loaded with Coca on its way to land and fuel at Olies Ranch.
This crap is all politcal. And just an attempt to pilfer more from an already tapped out economy before they leave. I do not believe we will ever see the true damage that these last 8 years have cost the U.S.

The grass is always greener over the septic tank

Tinto (Moderator) says on Apr 24, 2008, 15:01:

I realize wheat costs need to be passed on down the supply chain. But when wheat returns to a more normal price, are you going to roll back prices to the consumer? Roll backs happen with gasoline, coffee, butter and milk to some extent (things that are closer to a raw commodity); they rarely happen with processed goods.

Robert Jorge says on Apr 25, 2008, 19:12:

Lots of rice is grown in Colombia. One of the first people I met on my first trip to Colombia, was a rice farmer. He was quite proud of his new John Deere tractor which was the same size as a combine tractor used for corn in the US. The thing would cost a couple hundred thousand dollars in the US. I have no idea what it would cost a Colombian - with all the taxes and such.

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy

Catfish35 says on Apr 25, 2008, 19:51:

We will be forced to roll back the prices. Its the spirit of competition. One mom and pop shop will try to sell the cheaper as is right now. Some of not changed their prices and I cannot figure out how they are doing it to survive. With Flour rising 4times its normal they must take the hit somewhere.

The grass is always greener over the septic tank

slguy says on Apr 25, 2008, 20:02:

The thing would cost a couple hundred thousand dollars in the US. I have no idea what it would cost a Colombian - with all the taxes and such.

i do. ;)

Before you throw me out, make sure I pay my bar tab

Robert Jorge says on Apr 25, 2008, 23:10:

It is off topic - but I am curious. Since I posted, I found the tractors I remember growing up in Indiana seem to sell close to the half million dollar range. I guess I was low-balling the price.

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy

slguy says on Apr 26, 2008, 07:48:

agro/construction equipment is OBSCENELY expensive but also unbelievably efficient. i'm learning more every day. import duties into colombia are awful strong, but like everything else, negotiable. ;)

Before you throw me out, make sure I pay my bar tab

Tinto (Moderator) says on Apr 26, 2008, 08:41:

Robert, are you talking about a John Deere combine (aka harvester or harvesting machine) or a John Deere tractor? Above, you're mixing the terms a little, which is something someone from Indiana shouldn't be doing (I guess you spent your youth playing with toy motorcycles and weapons rather than toy farm equipment). ;-)

Combines
http://www.deere.com/en_US/ProductCatalog/FR/category/printableversion...

Robert Jorge says on Apr 26, 2008, 23:35:

True, true Tinto. I am talking about a harvester. One of those gargantuan machines that is air conditioned and has TV, CDs, etc. I wasn't talking about a simple tractor. I have been out of the loop for close to 20 years now, but I remember those things costing a quarter to a half million dollars back in the late '80s. I can only imagine what they cost now.

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy

Ctg Bound says on Apr 27, 2008, 05:21:

Tinto,

Yeah I agree, I expect it will soon head South as same as the wheat price.

Robert Jorge says on Apr 29, 2008, 00:22:

Trip report: Local Destin Walmart: no bagged rice on the shelves. You would think a hurricane was coming in 2 days. I bought a 50 pound sack 3 months ago, so I haven't been paying attention really.

--"I believe in making the world safe for our children. But not for our children's children, because I don't think that children should be having sex." - Jack Handy